Hotel revenue per room at $3? That’s what study says Myrtle Beach has seen during COVID-19
Myrtle Beach area hotels saw their average revenue per available room drop to as low as $3 during the coronavirus pandemic, according to a Coastal Carolina University study.
Occupancy rates also plummeted during the pandemic, but there are signs it could return to normal for the summer holiday season, the study reports.
“What’s normal in today’s world? Who is to say?” said Taylor Damonte, director of the CCU Clay Brittain Jr. Center for Resort Tourism. The center recently released its weekly report on tourism in the Horry County area.
Hotels and motels closed throughout Horry County and Myrtle Beach to help slow the spread of COVID-19. The hotels and short-term rentals have reopened as the area eases coronavirus restrictions and welcomes visitors back to the Grand Strand.
For the week of April 26-May 2, the average, midweek revenue per room at area hotels was $2.92, according to the report. That is down from $53.36 during the same week of 2019.
Damonte said the average revenue per room is calculated using the daily rate and occupancy. For example, if a hotel has a daily rate of $100, but is at 50 percent occupancy, its average revenue is $50.
Loss of revenue means that the business loses money and the tax poll decreases for the city and county.
With weekends considered, the average available revenue per room for April 26-May 2 was $8, the study reports. That is down from nearly $70 for the same stretch in 2019.
Hotel and motel occupancy rates also crashed during the pandemic, with some weeks below 4 percent for the region.
For April 28-May 2, the occupancy rate was 9.8 percent, down from 61.2 percent in 2019.
The center also looks at occupancy rates of vacation property rentals in the area. Researchers look at about 10 percent of the mom-and-pop vacation rentals in the area to see if they are booked or available for a particular week, Damonte explained.
For the week of May 2-8, the center found about 31.6 percent of vacation properties were rented. That is down from 69 percent for the same week of 2019.
As researchers looked at future reservations, they found July 4 week rentals are ahead of last year’s booking rate. There are about 64.8 percent of vacation rentals booked for the holiday weekend this year, up from 56 percent last year.
“This is really just a barometer of the demand for visitation at this moment,” Damonte said.
The rates could change, Damonte said, as more information is available to consumers. Weather or COVID-19 concerns could lead people to cancel, which would lower the rate.
“Normally, it’s a wonderful thing business is up,” he said.
This year though, an increase in business also puts challenges on government services to make sure everyone is safe, Damonte said.
